Gold Gains In Asia As Weak Dollar Supports Buying In Holiday-Thinned Trade – Gold prices rose in Asia on Friday as a continued weaker dollar aided sentiment even in a holiday-thinned market. Today marks the start of the Year of the Dog, the latest turn in the 12-year lunar zodiac cycle with China, Hong Kong, South Korea, Taiwan, Indonesia, Singapore, Malaysia, Philippines and Vietnam markets shut. Overnight, gold prices were mostly flat on Thursday with trading restricted to a narrow range as traders mulled over recent data pointing to growing inflationary pressure which could strengthen the Federal Reserve’s case for a faster pace of monetary policy tightening. In what was mostly a range bound session gold prices struggled to capitalize on dollar weakness as traders grew wary of adding to recent bullish bets on the yellow metal after upbeat wholesale inflation reaffirmed the narrative of improving US inflation.
Zinc prices rose as the dollar retreated and strong inflation data prompted a move into hard assets – Zinc on MCX settled up 0.09% at 229.75 recovered from the day’s low on short-covering tracking LME Zinc which ended the day up 0.1 percent at $3570 a tonne, having earlier hit its highest since July 2007 at $3,595.50 a tonne, though trading remained subdued with Chinese participants out for the week-long Lunar New Year break. While a rise in Chinese zinc production over the coming years will coincide with either a fall or a moderation in that country’s demand for the material, according to CHR Metals. The dollar languished near a three-year low against a basket of currencies on Friday, heading for its biggest weekly loss in nine months, as a slew of bearish factors offset support for the U.S. currency from rising Treasury yields amid firming inflation.
Oil gains as dollar sags near three-year low; many Asian markets shut – Oil prices edged higher on Friday as the dollar stood near a three-year low in subdued Asian trade, with many markets closed for the Lunar New Year holiday.”Oil is getting support from a rebound in global stock markets and a weak dollar, but the upside is limited due to a projection for rising U.S. production,” said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo. “The market is quiet due to a slew of holidays in Asia.” The dollar languished near a three-year low against a basket of currencies on Friday, headed for its biggest weekly loss in two years. A weaker dollar often boosts prices for oil and other dollar-denominated commodities. [USD/] Asian shares extended their recovery from two-month lows into a fifth day on Friday as Wall Street’s market volatility gauge fell, although Chinese and most Southeast Asian financial markets were closed for the Lunar New Year holiday.
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